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Chart indicates Gold will retrace to 720 before the end of 2009.

|Includes: DBA, DZZ, SPDR Gold Trust ETF (GLD), USO, UUP

gold720 in 2009

Every higher high from 2002 to 2008 was supported with a higher high of RSI and MACD, suggestive of bullish momemtum.

The last push up to 1007 however, was not.  The push to 1007 actually rose just high enough to "back-test" the prior 6 year support rsi/mach/stochastic channel, which used to be a support indicator.  Now it a resistance level.

Gold's longer term chart is displaying negative divergance with every indicator (rsi, mach, stochastics).

 

Target: 720 in 2009 (the major trendline support level)

Disclosure: Short GLD, Short USO

   &nbs... Long DBA (hedge)